The First Ever Bitcoin-backed Loan has Been Issued by Ledn Inc.
Employing the use of blockchain technology to provide solutions that meet the need of the general public is becoming a popular trend. In light of this, a Canadian Bitcoin-backed lender, Ledn Inc. (“Ledn”), has made announcements that it has issued the first-ever Bitcoin-backed loan in the country to Bylls— a Bitcoin payment processor.
Ledn Inc Gave Loan to Bylls
Ledn Inc. (“Ledn”), made this known at the Canada Fintech Forum held recently. This news is a noteworthy one has it helps to keep the flag of the Canadian Bitcoin ecosystem flying high. The news has also been described as an important milestone for Ledn Inc as it helps cement the company’s stance as the first and only Canadian company to issue a Canadian dollar loan taking Bitcoin as collateral.
Bylls which was launched about five years ago was developed to provide Canadians with an avenue for them to makes payment making use of bitcoin.
As regards the lending, the CEO of Bylls’ Francis Pouliot, has said that:
“As a self-funded startup, it is important that we are able to reinvest our Bitcoin revenues in our business to sustain our growth. Traditional industries can normally leverage their cash flow from operations, but we were never able to make use of our accumulated Bitcoin capital without having to sell our precious coins, until now. We are very excited to be the first company to use this service, which will finally allow us to maintain our policy of holding profits in Bitcoin. This is a game changer,”
Ledn Inc has a security Measure in Place
Based on a recent report, Ledn Inc also made it known that it has finished the development of its proprietary custodial vaulting solution which is aimed at making sure that collateralized Bitcoins are held in a securely in cold-storage vaults, within the loan period.
Ledn’s Co-Founder and Chief Strategy Officer, Mauricio Di Bartolomeo, also said that:
“Before our Bitcoin-backed loans, both ‘holders’ and Bitcoin business operators were at the mercy of the markets when they needed liquidity. With Ledn, they now have access to a source of liquidity while they await more favorable market conditions,”
He also commented on how the loan issued by the company is more tax advantageous.
He stated that:
“Ledn loans may also be a more tax advantageous way to access liquidity: whereas on the one hand, sellers of Bitcoin are subject to taxes on their profits, on the other hand, interest payments on Ledn loans may be tax deductible.”